Union Bank of the Philippines (UBP) is returning to the overseas bond market with the planned issuance of up to $800 million or its equivalent in other foreign currencies from its Euro Medium Term Note Program (EMTN).
The $2 billion EMTN program, set up in November 2017 and updated in 2020, allows the bank to raise funds by issuing debt securities in the international market.
The program still has $1.2 billion in available issuance.
The board of UBP also approved the increase in the bank’s bonds shelf registration program to P100 billion from P50 billion. Of the total, the bank will issue P30 billion.
It said the exact timing and further details about these planned issuances will be announced later.
These moves form part of Union Bank’s strategy to raise capital and strengthen its financial position for future growth. The bank raised nearly P18.2 billion from the sale of bonds in December 2023.
Meanwhile, UBP said it would also infuse additional P1.2 billion in capital to digital banking unit UnionDigital Bank Inc. to support its business operations and enable it to deliver sustainable growth,
UBP has been injecting fresh capital in UnionDigital to support its growth and boost its capital position.
UnionDigital is one of the six BSP-licensed online-only banks in the country. It secured its license in July 2021 and began operating in July 2022.
UBP, the banking arm of the Aboitiz Group, saw its net income increase 31 percent in 2024 to P12 billion on the back of strong revenues.
Jenniffer B. Austria
Net revenues grew 12.4 percent year-on-year, reaching a record high of P79.5 billion.
